Investing.com -- Global equity markets could be poised to outperform U.S. stocks if a U.S.-Iran peace deal materializes and oil prices continue to fall, according to Yardeni Research, which is standing by its "Go Global" investment strategy first recommended in December.

In a note, Yardeni said the All Country World ex-U.S. MSCI has already outperformed the U.S. MSCI over the past year and early this year for the first time since the 2000s.

Since the outbreak of the latest Middle East war, the U.S. has reasserted its leadership due to energy independence, but Yardeni said that "the rest of the world might soon start outperforming the US again on expectations that the end of the war is in sight."

The firm pointed to several supporting factors. Emerging markets have been the standout performers, with South Korea and Taiwan up 87.2% and 52.4% year-to-date respectively, driven by the AI trade boosting semiconductor earnings.

The Emerging Markets ex-China ETF is up 31.5% year-to-date versus 9.3% for the S&P 500 ETF.

Valuation is also said to favor international markets, with the forward price-to-earnings ratio at 21.3 in the U.S. compared to just 13.7 for the rest of the world.

Europe represents perhaps the most compelling recovery trade, Yardeni said, with Germany standing to be "the most direct beneficiary of lower energy prices once the war is over" given its position as the most energy-intensive economy in Europe.

Yardeni maintained its Go Global recommendation, saying falling oil prices "would clearly benefit the rest of the world more than the US."